An Economic Crisis Cheat Sheet for the Clueless

I feel clueless when I see all the news stories about our economy. What can I do to educate myself so I can understand what's going on?

Don't get overwhelmed. The most important thing for you to understand is your own financial picture then you'll have a better idea of how these larger market forces might affect you. First, make a list of your assets and liabilities, including your investments, bank accounts, and mortgage and credit card debt. Next, measure all of your expenses against your income to make sure you're not spending more than you make. Just by completing these two steps, you'll feel more in control of your money. Beyond that, there a few financial facts you must know: Familiarize yourself with your mortgage terms, find out your credit score on myfico.com, and make sure your bank accounts are yielding the highest interest rate possible.

More From Redbook

Now, to learn more about the bigger picture, get into back-to-school mode. First, get a good basic personal finance book. I recommend one of mine, of course: Smart Women Finish Rich or The Automatic Millionaire. Other great sources to expand your knowledge further are Yahoo Finance (finance.yahoo.com), The Wall Street Journal online (wsj.com), and cnbc.com. Whenever you read a finance article, if you don't understand a word or concept, circle it, then look it up just like you did when you were a kid (only these days you should use the Web, not the dictionary). Then reread the article. I promise you, the headlines will start to make more sense as you begin to understand the language.